Agenda item

[Prior to the consideration of this item, the Chair, Councillor Sharon Taylor (SBC) and Adam Wood Hertfordshire LEP) all declared potential conflicts of interest as they all serve on the Hertfordshire LEP Board or work for the LEP.]

Tom Pike (Strategic Director, SBC) presented a report in respect of Growth Deal 3 (GD3) funding.  He advised that a bid for £19M of GD3 capital funding had been made in the autumn of 2016, and approved by the Hertfordshire LEP in December 2016, as part of a package agreed with the Government (Cities and Growth Unit).  It included allocations for:

·           Relocation of the bus station to unlock development potential in Stevenage town centre;

·           Further land assembly to unlock other major opportunity areas;

·           Creating car park decking to enable development of other sites; and

·           Delivery of some at-grade crossings on existing highways to enhance connections with the central parts of the town.

The Board noted that the release of this funding was tied to specific conditions in relation to the governance of Stevenage Town Centre regeneration.  As it stood, GD 3 funding must be spent by the end of the Financial Year 2020/21, presenting a short window to deliver particular schemes. 

The Board further noted that, in February 2017, the Cities and Growth Unit and Ministers agreed that the bid from Hertfordshire LEP presented a strong case for investment, but had some concerns around funding, capacity and governance to deliver solutions in Stevenage.  A revised package of projects was agreed, subject to conditions that:

·           Local partners created a new governance structure to oversee the regeneration, with an independent Chair;

·           The new structure should include a stronger business voice than the pre-existing Stevenage First partnership, with representation from local employers; and

·           The new structure should also include stronger political representation, including the local MP.

After much discussion, the Cities and Growth Unit had agreed that the Stevenage GD3 funding can be released, subject to meeting these and additional conditions, required under the new ‘Towns Fund’.

The Board was advised that, with the appointment of a new independent Chair for the Stevenage Development Board, the creation of this new Board, and the approved Terms of Reference for the Board (see Minute 4 above), the £19M GD3 Stevenage funding would then be released to support and enable regeneration projects in Stevenage.

Tom Pike (Strategic Director, SBC) explained that the Borough Council had processed early work on the Stevenage Bus Interchange scheme and the LEP had approved GD3 funding of £9.6M for the project.  The Council was currently prioritising a range of developments and interventions for the balance of £9.4M capital funding that not only aligned with the regeneration programme for the town, but also achieved the spend profile within the allocated timescale.  The Council had been engaging with the Hertfordshire LEP and other partners to consider suitable projects, which could include improvements to the physical and digital infrastructure and utilities; land acquisition of town centre sites; sustainable transport; and public realm, heritage and environment improvements.

In response to a question, it was confirmed that the TIP proposals to be put forward would be complementary to the GD3 projects, and could include highways-related schemes.

On behalf of the Board, the Chair undertook to write to the Hertfordshire LEP confirming that Growth Deal 3 conditions had now been discharged and to request the release of the GD3 monies, both for the Bus Station Interchange project and the balance of funds to be used for other schemes.

It was AGREED:

1.     That it be noted that the previously approved GD3 Transport/Bus Interchange project was underway, and it be requested that delivery of the project is progressed in accordance with the funding application approved by the Hertfordshire LEP.

2.     That it be requested that the LEP and SBC review the most efficient and robust process for expediting remaining GD3 project applications.

3.     That delegated authority be given to the Chair to review proposed GD3 projects with the Officer Team prior to the next meeting, given that the meetings will be focussed mainly on the Town Deal.